Understanding the general direction of the current New Haven housing market conditions is of vital importance to both buyers and sellers in order to help you make a more informed decision when buying or selling a home in New Haven.
At a local level the inventory of homes in New Haven has been decreasing steadily over the past few months. At the time of this article the current absorption rate with less than a 6 month supply of homes is considered a seller’s market.
Today I would like to talk to you about Do You Know How Much Equity You Have in Your New Haven Home?
Do You Have Equity In Your Home?
Price Appreciation = Good News for Homeowners in New Haven CT
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“One million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.”
Frank Martell, President and CEO of CoreLogic, believes this is a great sign for the market in 2017 as well, as he had this to say:
“Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home equity is one of the main drivers of improved mortgage performance. Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending and the broader economy.”
This is great news for homeowners! But, do they realize that their equity position has changed?
According to the Fannie Mae’s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize that they may have more equity than they first thought.
“This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share of those saying it’s a good time to buy.”
78.8% of homeowners have significant equity (more than 20%) in their homes today!
This means that many Americans with a mortgage have an opportunity to take advantage of today’s seller’s market. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).
Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae spoke out on this issue:
“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market. However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market…”
Here is a map showing the percentage of homes in each state which currently have significant equity:
If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2017! Let’s get together to evaluate your situation!
If you’re considering making a move now or in the near future it’s important to get an estimate of the value of your New Haven home to determine what your home may sell for in today’s real estate market. Call me at (203) 645-7467 if you’re interested in knowing what your New Haven home is worth in today’s real estate market or so we can discuss your housing needs. I look forward to talking to you and assisting with your New Haven real estate needs.